(Corrects paragraph 3 to remove extraneous word)
* 4th-qtr adj profit/shr $0.84 vs est $0.79
* Revenue $1.65 bln vs est $1.67 bln
* Sees 1st-qtr adj profit/shr $0.53-$0.58 vs est $0.62
* Sees revenue $1.42-$1.52 bln vs est $1.52 bln
By Soham Chatterjee and Sampad Patnaik
May 21 NetApp Inc forecast a
current-quarter profit below market estimates after reporting a
4 percent fall in quarterly revenue, hurt by lower sales of data
NetApp said it expects an adjusted profit of 53-58 cents per
share on revenue of $1.42-$1.52 billion for the first quarter.
Analysts on average were expecting a profit of 62 cents per
share on revenue of $1.52 billion, according to Thomson Reuters
"Revenue was a bit short as our OEM business was a bit
weaker and that's reflected in both this quarter's results and
our guidance for the next quarter," Chief Executive Tom Georgens
IBM Corp, NetApp's largest OEM (original equipment
manufacturer) customer, reported its lowest quarterly revenue in
five years as hardware revenue fell 23 percent.
NetApp, which competes with market leader EMC Corp,
has been losing market share to newer storage technology vendors
such as Nimble Storage Inc and Pure Storage.
Some of its enterprise customers have held back spending on
hardware to evaluate newer flash and web-based storage and
software that can store data on commodity hardware.
"(The company) is getting attacked... by all these new
emerging companies. NetApp has been late with all flash arrays
and does not have a product that is all flash," Wunderlich
Securities analyst Kaushik Roy told Reuters.
While EMC is buying companies, NetApp has not been very
acquisitive and is therefore falling behind, Roy said.
NetApp's revenue fell to $1.65 billion for the fourth
quarter ended April 25.
Revenue at the company's OEM business, which accounts for 7
percent of total revenue, fell 30 percent. Product revenue fell
8 percent to $1.04 billion.
Net income rose to $197 million, or 59 cents per share, from
$173.8 million, or 47 cents per share, a year earlier.
Excluding restructuring and other expenses, the company
earned 84 cents per share.
NetApp said in March it expects to cut about 600 jobs
worldwide to save costs.
Analysts expected NetApp to earn 79 cents per share on
revenue of $1.67 billion.
NetApp's shares fell 2 percent in premarket trading. The
stock, which has lost 16 percent of its value in the year so
far, closed at $34.49 on Wednesday on the Nasdaq.
(Editing by Joyjeet Das)